Inflation rose from 0.3 per cent to in 0.6 per cent in December putting more pressure on families with clothes and travel costs rising
Inflation rose to 0.6 per cent in December as clothes and travel costs put more pressure on families, it was revealed today.
The headline CPI rate was up from 0.3 per cent in November – although it still remains far below the Bank of England‘s 2 per cent target.
The increases in petrol and other prices offset smaller falls in the costs of vegetables and meat.
The upward move was slightly above the expectation of economists, who had pointed to a rate of 0.5 per cent.
There are concerns that the huge amounts of money being pumped into the economy by the Bank and the government could lead to higher inflation in the longer term.
The headline CPI rate was up from 0.3 per cent in November – although it still remains far below the Bank of England’s 2 per cent target
Deputy National Statistician for Economic Statistics Jonathan Athow said: ‘Clothing prices put upward pressure on inflation in December, despite some evidence of continued discounting.
‘Transport costs, including air, sea and coach fares, as well as petrol prices, rose as some travel restrictions eased during parts of the month.
‘These were partially offset by falling food prices, most notably for vegetables and meat.’